Marxian Analysis of Capitalism and Crises

ABSTRACT

The subject of economics, which was once famous for several views and schools of thought, has been limited to just one school neoclassical: where markets usually find equilibrium, meaning government intervention is not needed, and any such intervention could hinder the economic growth process and smooth functioning of the economy. The neoclassical theory focuses on the behaviour of individual agents, which are assumed to be economic decision-makers. There is an attempt to emphasise the importance of the Marxist approach to analysing capitalist crises logically and historically. The study of economics must stay close and keep unity between different social sciences, especially sociology, political science, and history, which classical economists had established but marginalist economists had tried to undermine. The study concludes that economics is embedded in society and politics, and the mainstream school of thought ignores this. They cannot effectively address the main economic issues of our times, which include combating rising inequality, economic and environmental crises, and biodiversity loss.

KEYWORDS:

• Capitalism
• mainstream theories
• Marxism

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Kalim Siddiqui

Kalim Siddiqui is an economist, specialising in international political economy, development economics, and economic policy. He has taught economics since 1989 at various universities in Norway and UK. His research interests include political economy, international trade, comparative and historical economics, South Asia and emerging economies. He has made significant research contributions in areas like trade policy, globalization and political economy. He has published chapters in edited books and articles in refereed academic journals since 1986.